Japan's Toray, Gumi sign $366 million MOU on fiber, film facilities

Home > Business > Industry

Japan's Toray, Gumi sign $366 million MOU on fiber, film facilities

Published: 22 May. 2024, 16:10 Updated: 22 May. 2024, 17:49

KIM JU-YEON
kim.juyeon2@joongang.co.kr

Industry Minister Ahn Duk-geun, right, shakes hands with Toray Industries President and CEO Akihiro Nikkaku at the Conrad Seoul on April 19, where the two discussed the company’s investment in manufacturing facilities in Korea. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Japan's Toray Industries will invest 500 billion won ($366 million) to build manufacturing facilities in Gumi, North Gyeongsang, as part of a memorandum of understanding (MOU) signed with the Ministry of Trade, Industry and Energy as well as the regional and local governments on Wednesday.

Toray plans to further capitalize on the investment to strengthen its partnership with domestic companies, such as Hyundai Motors, and bolster research and development.

The MOU was signed by representatives from Toray Industries, the North Gyeongsang and Gumi governments and the Industry Ministry at the Conrad Seoul on Wednesday, the ministry said the same day.

Under the agreement, the Japanese firm will invest 500 billion won from 2023 to 2025 to build production facilities for chemical fibers, plastic film and EV separators in Gumi. In turn, the Industry Ministry and the city government will manage the financial administrative aspects of the investment needed for its implementation.

The MOU follows a deal inked in April by Toray Industries and a chip material company to invest $120 million to construct aramid textile manufacturing facilities in Korea.

Toray has so far invested more than 5 trillion won in Korea since its first deal in 1963. Its manufacturing materials range from carbon fiber and advanced plastics to separators for EV batteries.

“The latest investment will secure domestic production for key materials used in future core industries such as EVs, batteries, as well as hydrogen and display products, thus strengthening supply chains; it is also significant in that Toray Industries will use Korea, along with the country’s global trade network, as its base for Asian exports,” Industry Minister Ahn Duk-geun said through the ministry’s press release.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]